MSE News: Do you rent? Here's a new trick to boost your credit rating

20aday

Guest101 wrote: »

I'm not sure it would apply in your situation, as you would be a lodger - but worth checking

Granted I'm a lodger and perhaps this particular scheme wouldn't apply to people such as myself but if it helped me in terms of credit history (certainly not third party "scores") then I guess it's worth exploring.

Pincher

It might improve your Experian score, but it sounds like the kind of thing a mortgage lender computer would ignore, unless somebody actually re-wrote the program.


If 10% of mortgage applicants have rent payment history, and 90% do not, it's unlikely to be a major factor. Worse, the lenders could even consider it guilt by association, like Pay Day Loan. That it smacks of desperation.

marksoton

Pincher wrote: »

It might improve your Experian score, but it sounds like the kind of thing a mortgage lender computer would ignore, unless somebody actually re-wrote the program.


If 10% of mortgage applicants have rent payment history, and 90% do not, it's unlikely to be a major factor. Worse, the lenders could even consider it guilt by association, like Pay Day Loan. That it smacks of desperation.

The above is a bloody good point.

Wonga used to state their loans were a way to improve your credit record.

All the evidence now suggests the complete opposite.

I also find the concept of building your credit record via rent payments a red herring. Anyone who has other credit commitments has no need for this.

VT82

'Do you rent? Here's a new trick to boost your credit rating'

Why does MSE feel the need to call this a 'trick'? It's not a trick. Why do they feel their newsfeed headlines need to stoop to the level of clickbait journalism? What's next - Overweight? Here's one weird old tip to lose belly fat for free?!?!

Miss_Samantha

Well, at least they didn't title it "Bad credit? Banks hate this trick"

dimbo61

Please let this bright idea die peacefully in its sleep.
More costs to administer and staff to pay, huge computer network open to fraud and theft.
Millions of pounds going from tenants to WHO ? and then days later to landlords.

How many letting agents have suddenly closed shop and vanished with hundreds of thousands of pounds of rent and deposits.

poppasmurf_bewdley

I honestly cannot see any possible advantage to a renter by joining this scheme.

But I can see the possible disadvantage that the monthly rental could disappear if the company goes into liquidation.

I wouldn't touch it with the proverbial bargepole.

edinburgher

I don't miss renting, but despite doing it for over 10 years (and 10+ addresses), I got on the housing ladder ok. Basics like affordability and a deposit seemed to be considered far more than payment history etc. (I had very little).

thesaint

edinburgher wrote: »

I don't miss renting, but despite doing it for over 10 years (and 10+ addresses), I got on the housing ladder ok. Basics like affordability and a deposit seemed to be considered far more than payment history etc. (I had very little).

It's not about getting on the housing ladder.